Chapter Seven
Corporate Ethics: Good Governance
WHAT IS CORPORATE GOVERNANCE?
Corporate governance is typically perceived by academic literature as dealing with “problems that result from the separation of ownership and control.”1 From this perspective, corporate governance would focus on: The internal structure and rules of the board of directors; the creation of independent audit committees; rules for disclosure of information to shareholders and creditors; and, control of management. Figure 7.1 explains how a corporation is structured.
Fig. 7.1 Separation of Ownership and Management
DEFINITIONS OF CORPORATE GOVERNANCE
Though the concept of ...
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